PAGCOR Reports Surge in Online Gaming License Inquiries After FATF Grey List Exit
The Philippine Amusement and Gaming Corporation (PAGCOR) has seen a sharp rise in online gaming license inquiries. This follows the country’s removal from the Financial Action Task Force (FATF) grey list. Chairman and CEO Alejandro Tengco credited the ban on offshore gaming operators for securing this milestone.
FATF Grey List Removal Increases Licensing Interest
The FATF grey list includes jurisdictions under increased monitoring for financial integrity concerns. The Philippines spent three years on the list before its removal last month.
Speaking at the ASEAN Gaming Summit in Manila, Tengco said banning Philippine Offshore Gaming Operators (POGOs) helped achieve this outcome.
Since the announcement, PAGCOR has received a surge in inquiries. Many applicants have requested regulatory guidelines and licensing procedures.
Regulatory Changes and Economic Impact
Banning POGOs created regulatory challenges but also opportunities for restructuring. PAGCOR oversaw the closure of offshore gaming operations while minimizing economic disruptions.
To support the transition, the agency allowed specialized business process outsourcing (BPO) firms to continue operating.
These firms provide backend support services without engaging in gaming. Since the grey list removal, applications for special class BPO licenses have increased.
Growth in the Philippine Gaming Industry
Despite regulatory shifts, the gaming sector continues to grow. Preliminary data for 2024 shows gross gaming revenue (GGR) reached $7.16 billion.
This marks a nearly 25% increase from the previous year.
Land-based casinos generated almost half of the total GGR. However, eGames and eBingo segments also recorded strong growth.
PAGCOR remains committed to regulating electronic gaming while preventing unauthorized operations.
Policy Adjustments to Support Industry Expansion
In January, PAGCOR lowered remittance rates for online and on-site betting platforms from 35% to 30%. This move aims to improve sustainability and competitiveness.
The agency also plans to require licensed operators to allocate part of their GGR to national development projects.
These steps align with its goal of balancing financial growth with social responsibility.
Ongoing Crackdown on POGO Operations
Authorities continue efforts to shut down illegal POGO operations.
The Criminal Investigation and Detection Group of the Philippine National Police has deployed teams to track and close unlicensed offshore operators.
As regulations tighten, PAGCOR remains focused on maintaining compliance while fostering a more secure gaming industry.